BURSA MALAYSIA BERHAD Destination of choice for listings and investments in the region

www.bursamalaysia.com

CLSA INVESTORS’ FORUM, HONG KONG Zul Mustafa, Head of Strategy Management Office

21 – 22 September 2011

2

Integrated Exchange with Diversified Offerings

10 Derivatives Products:

Commodity futures Equity futures Equity options Financial futures

Sukuk Shari’ah compliant equities i-REITS i-ETFs Bursa Suq Al-Sila’

TRADING CLEARING SETTLEMENT DEPOSITORY

2 Markets: Main Market : 837 cos ACE Market : 119 cos

Market Cap @ 30 Aug 11 : RM1,242 bil (USD416 bil)

Products : Shares, REITs, Warrants, ETFs, CBBCs, Loans & Bonds

Focus : Drive Liquidity &

Vibrancy

Focus : Leverage On Existing Strategic Partnership

Focus : Attract International Investors & Issuers

SECURITIES DERIVATIVES ISLAMIC OFFERINGS OTHERS

Bond Market Electronic trading platform for : Government Bonds

Corporate Bonds

Non-ringgit securities

Sukuk Listing

Offshore Market

LISTING

Strong Result for 1H11

• 1H11 PATAMI of RM76m, up 37% YoY

• Operating Revenue of RM200m, up 27% YoY; increased securities and derivatives trading volume

• 2Q11 PATAMI of RM36m, lower by 12% in comparison to 1Q11

• Annualised ROE of 18%; up 29% YoY

• Cost-to-income ratio of 50%; improved by 7% YoY

• Interim dividends of 13.0 sen per share, up 37%

3

1,044 1,342 1,315

1H10 1H11 Jul-Aug 11

1,314.02

1,579.07 1,533.99

37% 1,405

1,927 1,923

1H10 1H11 July-Aug 11

31%

35% 35%

Securities Market Drivers Greater Growth in Key Drivers

RM mil ADV(OMT+DBT)

Average Daily Value (ADV) & Velocity

2,267 2,376

3,571

1H10 1H11 Jul-Aug 11

Velocity Market Cap FBMKLCI IPO Fund Raised No. of IPO

Market Capitalisation & FBMKLCI

12 17

9

IPO Activity

29% 5%

4

RM mil RM bil

23,175

34,478 36,003

1H10 1H11 Aug-11

33%

128,610

227,770

172,830

17,685 23,932 24,860

5,490

10,546 11,142

1H10 1H11 Aug-11

8,361 14,758 13,734

14,815

19,720 22,268

1H10 1H11 Aug-11

Derivatives Market Drivers Derivatives reaching all time highs

5

92%

77% 35% 49%

Daily Average Contract Traded (DAC)

Foreign Domestic

Foreign vs Domestic DAC Retail vs Institutional DAC

DAC Average Daily Position

Retail Institutional

Positive Growth Outlook

Securities Market

Highest Savings Rate in the Region Potential to unlock liquidity

Support from government policy and initiatives – NEM & NKEA Work in progress for selldown of GLIC holdings and structural issues

YTD July 2011 velocity @ 35% Potential for growth compared to peers

Moved to CME’s Platform Focus on growing volume & getting more foreign investors connected to trade

Contract volume increasing FY11 volume up approx 50% from FY10

New Clearing System New products to be introduced

Derivatives Market

6

Expand investor base (foreign & domestic) Greater diversity

Our Immediate Priorities (2011) Building Blocks for Future Growth

1. Increase Proprietary Day Trading 2. Penetrate new foreign institutional markets 3. Driving trading vibrancy via Domestic Institutions 4. Energise retail focusing on high value segments

Focus Area

1. Increase Foreign participation – Hedge & Commodity funds, High frequency traders

2. Improve *Locals & Domestic Institution participation 3. Improve Retail participation – improve distribution

channels

1. Increase participation on BSAS 2. Promote shari’ah compliant equities

Improve access to market Improve product offerings & awareness

Improve awareness of Islamic products Expand customer base

* Local - A local participant is an individual who has been admitted as a participant in accordance with The Rules, registered with SC and has the right to trade for himself - all futures contracts listed on the Derivatives Exchange.

Securities Market

Derivatives Market

Islamic Market

7

Securities Market

Derivatives Market

Islamic Market

Improve access to markets

Liberalise access to market Attractive new product offerings

Centre of Islamic equities Expand foreign client base

Medium Term Priorities (2012-2013) Holistic Improvements Towards Vibrant Markets

1. Build upon 2011 efforts 2. Improved trading system infrastructure 3. Address structural issues (membership, access) 4. Explore strategic alliances

1. Address structural issues (membership, access) 2. Improve infrastructure – extend trading hours,

liberalise front end options 3. Build capability – increase no. of futures brokers 4. Enhance product development

1. Expanding client base – foreign & domestic 2. Enhanced shari’ah compliant offerings

Focus Area

8

1. Securities Growth in Daily Average Trading Value p.a. to be at

par with the leading listed exchanges in the region

2. Derivatives 50,000 Daily Average Contract by 2013

REGULATORY KEY GOALS FOR 2010

PROFITABILITY PAT growth rate of at least 20% p.a. on average over the next 3 years

Midterm Targets

LIQUIDITY

Committed to improve the market quality, to become more vibrant & competitive, and ultimately translate to better financial performance

9

10

Country

Recognition & Competitiveness

Free Capital Mobility & Improved Access to

Capital Market

New Economic Model - high value & high income Increasing private sector role in driving business Creating a conducive environment for entrepreneurship Focus on developing Human Capital & Innovation

4th for Investor Protection (World Bank)

10th for Resilience in crisis (Sevcorp Int’l Business Confidence Survey)

25th amongst 134 countries for Corporate Governance Framework (World Economic Forum)

Access for Foreign Participation No restrictions on international

investments in Malaysia.

Free to repatriate capital, profits and income.

Liberalised entry and ownership for foreign players in the capital market.

Foreign Listings

10

Conducive Investment Environment

MARKET FRAMEWORK

1) Young & Dynamic: With a population of 28 mil, Malaysia’s labor force stands high at 64%. Only 5% of population is above age 65

OUR ASSET

Conduit to Malaysian Growth

11

Our Strengths

2) Culture & Ties : Ties with China, India, Indonesia and the Developed World

3) New Corporate Champions: Companies expanding beyond domestic markets

PEOPLE

4) Good infrastructure: Open access & business friendly

5) Corporate Governance: Regulatory focus on CG practice, transparency & investor protection

6) Expanding capital market: QDII, US SEC Recognition & FTSE Advance Emerging Economy Status

7) Route into ASEAN: Malaysia is situated at the heart of ASEAN’s 590 million people

LOCATION

8) Commodities: Oil & Gas, Palm Oil, ample Land

Malaysian macro outlook is a strong, with 7.2% growth last year and estimated 5% for 2011. Bursa is a proxy to the economy

The Exchange is a conduit to ASEAN growth and Malaysian companies expanding across the region

Our Story

Regional Champions

Some of our companies are global leaders in their respective fields and others are making mark around the region. They grow by leveraging on the country’s assets and pro-business policies. These companies now spearhead Malaysia’s emergence as a dynamic advancing economy.

Finance Plantation

Telcos Others

12

Migration of Malaysian derivatives products to CME Globex®

QDII – Malaysia Investment destination for China investors

CBRC Recognition

FTSE Upgrade

CFTC Approval

U.S. SEC Approval

“Designated Offshore Securities Market” recognition to ease trading in Malaysian listed securities & shelf listed bonds by U.S. investors

CME Partnership

Malaysia promoted to Advanced Emerging Market status in FTSE Global Equity Index Series

13

Approval from US Commodity Futures Trading Commission (CFTC) to enable Malaysian Futures brokers to deal with US customers

Global Partnerships and Recognition

We have built successful global partnerships and will continue effort to collaborate.

High Dividend Payout Surpassing 75% Payout Policy

Total Shareholders’ Return since listing till 30 June 2011

247%

Interim Dividend (single tier)

Final Dividend (single tier)

Franked Dividend

Historical Dividend Payout in sen

FY2009 FY2010 FY2011

3.8

5.0

9.0

9.5

10.5

13.0

93% 94%

91%

Dividend payout

14

Financial Review

Operating Revenue 16

Stable Revenue Breakdown 17 Prudent Cost Management 18

52%

13%

28%

7%

1H11

Operating Revenue Higher Revenue from Securities and Derivatives

RM mil 1H10 1H11 YoY 1Q11 2Q11 QoQ Securities Trading Revenue 76.4 103.8 36% 57.7 46.1 -20% Derivatives Trading Revenue 17.5 25.3 45% 13.0 12.3 -6% Stable Revenue 52.5 56.6 8% 27.5 29.1 6% Other Operating Revenue 11.3 14.6 30% 9.6 5.0 -48% Total Operating Revenue 157.7 200.3 27% 107.8 92.5 -14%

157.7 27.7

55.1 62.9 67.0 200.3

+27.4 +7.8

+4.1 +3.3

1H10 1H11

Total revenue mix Growth contribution by revenue stream

+27%

YTD Total Operating Revenue RM mil 16

Stable Revenue Breakdown RM mil 1H10 1H11 YoY 1Q11 2Q11 QoQ Listing Fees 17.9 19.3 8% 9.9 9.3 -6%

Depository Services 15.9 16.6 4% 7.8 8.8 13%

Information Services 8.2 9.7 18% 4.5 5.2 16%

Access Fees 3.7 3.7 - 1.8 1.9 6%

Broker Services & Co-location 5.5 5.8 5% 2.9 2.9 -

Participants fees 1.3 1.5 15% 0.6 1.0 67% Total Stable Revenue 52.5 56.6 8% 27.5 29.1 6%

52.5 52.4 53.8 54.6

56.1 56.4 56.6 +1.4

+0.7

+1.5 +0.3 +0.2

1H10 1H11

34%

29%

17%

7% 10%

Total stable revenue mix Growth contribution by revenue stream

1H11

3%

YTD Total Stable Revenue RM mil

+8%

17

93.9 13.9 19.1 19.1 20.2 20.9

26.6 109.4

+7.4 -2.2 +1.1 +0.7

+5.7 +2.8

1H10 1H11

RM mil 1H10 1H11 YoY 1Q11 2Q11 QoQ Staff Cost 43.7 51.1 17% 25.9 25.2 -3%

Depreciation & Amortisation 22.0 19.8 -10% 9.8 10.0 2%

Market Development Expenses 6.1 7.2 18% 5.4 1.8 -67%

IT Maintenance 7.2 7.9 10% 3.8 4.1 8%

Globex®Service Fee - 5.7 New 3.0 2.8 -7%

Other Opex* 14.9 17.7 19% 9.9 7.7 -22%

Total Operating Expenditure 93.9 109.4 16% 57.8 51.6 -11%

47%

18%

7%

7%

5% 16%

1H11

*Other OPEX comprises building management costs, administrative expenses, CDS consumables & etc.

Prudent Cost Management

Total expenses mix Movement in cost by type of expenses

YTD Total Operating Expenses RM mil

+16%

18

Additional Information

Board of Directors & Shareholdings Structure 20

Securities Market Trading Activity 21

Securities Market Trading Participation 22 Securities Market Foreign Ownership 23

Bursa’s Potential To Grow Its Velocity 24

Derivatives Market Activity 25

Derivatives Market Demography 26

Sound Macro Environment 27

20

Board of Directors & Shareholdings Structure As at 30 August 2011

13 Members

7 Independent Non-executive Directors 1 Senior Independent Non-Executive

Director (also an INED)

1 Non-Independent Executive Director

4 Public Interest Directors (also independent)

16.9%

83.1%

Foreign

Local

Substantial Shareholders Shareholding by Size

Minister of Finance Inc.

Capital Market Development Fund

16.2%

18.8%

Market Capitalisation of Bursa Malaysia : RM4.2 bil (USD1.4 bil)

20

EPF 9.7%

1,924

497 805 911

350 472 748

874 718

1,019

2,179

1,181 1,129 1,403

1,863

-

400

800

1,200

1,600

2,000

2,400

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD Aug 2011

RM mil

Annual DATV & Velocity 57%

31% 40% 39%

20% 23%

34% 32% 25%

34%

53%

34% 34% 33% 35%

2,610 2,303

2,069 1,751 1,907

1,187 823 854

615

1,490 1,266 1,099 1,435 1,209 1,387

1,566 2,161

1,579

- 400 800

1,200 1,600 2,000 2,400 2,800

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

RM mil

68%

54% 50%

41% 46%

31% 25%

32% 23%

48%

36% 28%

35% 28% 31%

37% 42%

30%

Securities Market Trading Activity Quarterly DATV & Velocity

Daily Average Trading Value (RM mil) Turnover Velocity

Daily Average Trading Value (RM mil) Turnover Velocity

21

65 63 58 73 73 74

35 37 42 27 27 26

2006 2007 2008 2009 2010 YTD Aug 2011

357

806

496 323

484 501

66 63 76

67 74 75

34 37 24 33 26 25

2006 2007 2008 2009 2010 YTD Aug 2011

346

806

283 369 409 481

Securities Market Trading Participation

From 2006 to 2009, the statistics were based on Brokers’ submission. From 2010 onwards statistics were based on Bursa’s internal system.

Retail (%)

Institutions (%)

Local (%)

Foreign (%)

Retail DATV (RM mil)

Foreign DATV (RM mil)

Retail vs Institutions Foreign vs Local

22

23

Securities Market Foreign Ownership

7.6%

1.8%

1.0%

0.4%

0.2%

14.3%

Singapore

Hong Kong

UK

USA

Mid-East

Others

25.3%

74.7%

Foreign Ownership by Nationality

Foreign Nominees

Based on Market Capitalisation (as at month end)

26.5

25.7

24.1

21.7

20.9

20.7

20.7

20.9

20.4

20.4

20.6

20.8

21.8

21.9

22.0

21.7

22.

1

21.6

Aug 2011

%

1.5% China / Taiwan

23

244%

181%

153% 121%

119%

118% 85%

83%

74% 70%

57%

48% 45%

36%

30%

17%

London SE

24

Hong Kong Exchanges

Source: World Federation Exchanges (WFE)

YTD August 2011

Philippine SE

Bursa Malaysia

Indonesia SE

Singapore SE

The Stock Exchange of Thailand

National Stock Exchange India

Taiwan SE Corp.

Tokyo SE

NYSE Euronext (Europe)

Australian SE

Shanghai SE

Korea Exchange

NYSE Euronext (US)

Shenzhen SE

Bursa’s Potential To Grow Its Velocity

66

85

159

125

156

123 132

167

2004 2005 2006 2007 2008 2009 2010 YTD Aug 2011

148

117

142

123 129

115 114

132 136

162

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

25

Derivatives Market Activity Total Annual Contract (Million)

KLCI Futures

Crude Palm Oil Futures

Others

Open Position (000’)

27%

24

72%

Quarterly (Daily Average Contracts 000’)

KLCI Futures

Crude Palm Oil Futures

Others

Open Position (000’)

28%

7

0%

25

29

24 22

24 23 25

24

37 32

2.6 2.5

4.2

6.2 6.1 6.1 6.2 5.6

Derivatives Market Demography

* Local - A local participant is an individual who has been admitted as a participant in accordance with The Rules, registered with SC and has the right to trade for himself - all futures contracts listed on the Derivatives Exchange. 26

31 19 14 16 16 13 15 15 15 21 20

45

48 45 43 40

40 41 46 45 44 40

3

6 5

3 3 2 2

2 2

2 2

14

23

31 37 40

45 42 37 38

33 38

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD August

2011

%

FKLI

40 38 35 33 35 31 25 27 33 34 34

15 21 26 24 23

27 34 38

24 26 24

27 21 18

20 22 25 22 14

27 15 14

14 14 17 20 18 16 18 20 16

25 28

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD August

2011

%

FCPO

Local Domestic Retail

Domestic Institutions Foreign Institutions

Local Domestic Retail

Domestic Institutions Foreign Institutions

Sound Macro Environment

• Projected 5% - 6% for 2011F (Source: BNM)

GDP Growth

• > 90% of assets are RM denominated • Non-performing loan at 2.3% @ end Feb 2011 (Source: BNM)

Strong Banking Sector & Ample Liquidity

• Overnight policy rate: 3.0% Conducive Domestic Interest Rates

• Modest 2.5% - 3.5% for 2011F (Source: BNM)

Manageable Inflation

• 2011F at RM 114.2 billion (Source: MOF)

Strong Current Account in the Region

• > USD136.1 billion @ 15 August 2011 (Source: BNM) Healthy International Reserves

27

KOAY LEAN LEE koayll@bursamalaysia.com

603-2034 7306

Disclaimer :

Bursa Malaysia and its Group of Companies (the Company) reserve all proprietary rights to the contents of this Presentation.

Whilst the Company endeavours to ensure that the contents in the presentation booklet are accurate, complete or have been obtained from sources believed by the Company to be accurate and reliable, neither the Company nor the Presenter make any warranty, express or implied, nor assume any legal liability or responsibility for the accuracy, completeness or currency of the contents of this Presentation.

In no event shall the Company be liable for any claim, howsoever arising, out of or in relation to this presentation booklet to the recipient of this presentation booklet and/or to any other third party.

© Bursa Malaysia 2011

INVESTOR RELATIONS CONTACT INFORMATION

E-mail : ir@bursamalaysia.com Fax : 603-2026 3684

MUHAMMAD ALI muhammad@bursamalaysia.com

603-2034 7673